How to get out of debt, step 12:

Find the best "get out of debt loan" and take it.

Previous: 11. Give to charity.

12. Find the best credit card debt consolidation loans and take one.

Ingredients: your list of debts, your comparison of their terms, your triage list.

Remember what we discussed earlier about debts which are most expensive and most pressing. In both of these cases, it is better to deal them quickly, even if it entails incurring a different debt. You will want to exchange your expensive and pressing debts for a debt with better conditions.

Often, this is done through debt consolidation. Credit card debt consolidation loans are a form of "get out of debt" loan used to pay off a lot of separate credit card debts. You can take out loans to pay off other debts as well, but credit cards are usually a priority because they are so expensive. If the loan has collateral, when it is secured against some property such as a house, the terms will be even better. There is risk involved in this, of course, but that is why this step of consolidation is suggested after you've done all the budgeting. You have the information to decide whether this risk is warranted. If your new budget is workable, you can proceed with confidence. If it's going to be a stretch, it may be better to take an unsecured loan at a slightly higher rate.

One thing to take note of is refinancing fees. There are consolidation lenders that can charge high fees that can make this option not so advantageous. Shop around for the best credit card consolidation loans with the lowest refinancing fees. Some of these services are listed on the sidebar of these pages. Make sure they will help you, and not simply cost you money. Using a qualified professional can save you money at the end of the day.

Prepare your case for such a loan, take out the full amount of your debt that needs to be eliminated quickly, and do so. This will already help you sleep better, and you will be saving on your debt expenses in a significant way. You may also be able to renegotiate personal loans. Keep the guiding principle of making your debts as inexpensive as possible. Remember that large amounts at less interest can still be more expensive than smaller amounts at higher interest.

Next: 13. Renegotiate debts for lower rates and better terms.

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